An imperfectly competitive firm faces a demand curve that is ________, while a perfectly competitive firm faces a demand curve that is ________.
A. perfectly inelastic; perfectly elastic.
B. horizontal; downward-sloping.
C. perfectly inelastic; downward-sloping.
D. downward-sloping; perfectly elastic.
Answer: D
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Which of the following decreases the natural unemployment rate?
A) higher oil prices B) a recession C) a decrease in aggregate demand so that fewer workers are needed D) many young people entering the labor force E) rapid technological change that increases the demand for labor
Trade that is within a country or between countries is based on the principle of
A) comparative advantage. B) scarcity. C) competition. D) absolute advantage.
Assume there is a decrease in the number of substitutes for a good produced by a profit-maximizing price-setting firm. All else constant, this would cause the firm's ability to markup price above average cost to:
A) decrease. B) stay the same. C) increase. D) cannot be determined with the information given.
Based on the table showing a summary of fiscal tools, if the government increases its purchases, it is most likely trying to ______.
a. fight inflation
b. enact contractionary policy
c. decrease aggregate demand
d. fight unemployment